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Forced Closure of Private Corps and Transfer Funds

Topics: Problems: Forced Closure of Private Corps and Transfer Funds

Borg Queen

Saturday, November 22, 2014 - 01:20 pm Click here to edit this post
Andy, why isn't it possible to Transfer cash to public Corps one has the control of? It's really annoying to see Corps close down even though you have the Money to easily save them.


Sunday, November 23, 2014 - 01:46 am Click here to edit this post
I totally agree with BQ. This is very frustrating.

Perival Lovacore

Sunday, November 23, 2014 - 05:40 am Click here to edit this post
I haven't had these problems yet, but can you issue new shares and/or take out direct loans when corps have high debt?

Borg Queen

Sunday, November 23, 2014 - 10:55 am Click here to edit this post
you can take out the loans manually only with corps money, so if you pay back the loan manually when the corp is still loosing money all it does is take up the loan next month again and you loose the 1.5% penalty you have to pay extra if you manually pay back a loan.
you cant issue new shares, you can only sell shares from a owner (CEO, Country) and the money goes to that owner. So no way atm to get money into the corps manually


Wednesday, November 26, 2014 - 02:48 pm Click here to edit this post
A corporation can issue new shares.
the proceeds are going into the corporation cash.

there are two places where you can sell corporation shares:

1 on the share market - the seller is the owner (country or enterprise).
2. On the corporation page. the seller is the corporation.

In public corporations, also in the real world, one shareholder, even if he holds 90% of the shares, cannot move money in or out of the corporation.

if you want an investment into the corporation, ALL shareholder must participate, paying or receiving the same amount per share.

In the real world, share holder can decide to purchase some new shares or not. If they do, their percentage can remain the same as before, if not, their share is diluted.

This is hard to do here, forcing all shareholders to decide what they want to do.
hence the issuance of new shares by the corporation on the market and anyone can participate.

You can issue the shares and then purchase them by your country or enterprise.

Borg Queen

Wednesday, November 26, 2014 - 04:07 pm Click here to edit this post
Oh, thanks for the clearification. Got that with new shares wrong.
But about cash in RL corps: Those can retain profits. If you could make it possible for our public corps to retain an owner set amount of cash before payouts that would help floating through negative profit times


Thursday, November 27, 2014 - 08:21 am Click here to edit this post
I am surprised.
Public corporations sometimes have more than 200B in cash. It is in fact far too high.

Perival Lovacore

Thursday, November 27, 2014 - 12:58 pm Click here to edit this post

Regarding the too much cash in public corps issue, you can, in effect, take the corp private again, and then take out the cash.

Of course much has to be aligned to do this. Other owners have to be willing to sell. Also, it's rare that the equity price here is lower than asset value. When the share price is at or close to parity, however, it can be worthwhile.

Borg Queen

Thursday, November 27, 2014 - 06:06 pm Click here to edit this post
Well Andy, maybe this is true, but if a public corp is running on minus this can lower quite fast, as well as increase if they make profit. My Public Defense Weapon Maintenance I got all were running towards closure, one has closed due to dept. And now only a few game months later they all run at 2B profit per month while they were running on minus less then 2 game years before. They are all maxed out on quality/efficiency. So I would guess if they are allowed to build a bigger buffer while they can many unnessesary clousures could be prevented.

Perival Lovacore

Friday, November 28, 2014 - 05:42 am Click here to edit this post
This can especially be a problem, as Borg Queen points out, in corps where the inputs are $BB items, like airports and bases. A few immediate buys and/or shortages, and the finances are really thrown out of whack.

This can also be worsened by the domino effect of new product introduction, especially raw materials. Shortages here cause other corps to stop producing. If half the biggest suppliers of chemicals on each world didn't log in to adjust this week, virtually every product level 3 or over would have been halted. Even with months of other product inventory on hand, they would've been stopped cold for want of lead or lithium.

You're introducing many new things, and that's very exciting, and I am glad that you are. The old rules that were important for game play with a stable economy may need loosening in this period of new item roll out.

In other words, we need Quantitative Easing in Sim-country. Do it now Andy. Don't be afraid.

Borg Queen

Friday, November 28, 2014 - 12:11 pm Click here to edit this post
Just to underline that I don't care about the money, only about the Corps survival:
For at least a RL-Year I run a de-facto Monopoly on Production Plants Corps on KB with a high volume surplus just to make sure for everybody Corps can be built cheap and all of those Corps run negative profits.


Wednesday, December 3, 2014 - 11:03 am Click here to edit this post
New products used to be a problem in the first game months after introduction.
It is no longer the case as we make the corporations place small orders for these materials even before they start to use them.
Only later, the products are used and numbers increase over a longer period.

Corporations that consume large items need more cash.
Public corporations can increase their cash reserves by issuing more shares and only a few players are using this option.

I will look into the cash level of corporations producing such items.

I also think that the problem will subside with the gradual reduction in the price of such items. The last reduction was earlier this week.

Borg Queen

Thursday, December 4, 2014 - 10:54 am Click here to edit this post
If the prices go down and the amount of cash the public corps reserve before payout to owners that will help.
But it would be way nicer if the owner of public corps could set an amount to which the Corps should pile cash before they start to payout cash above this set amount, this also is what RL Public Corps do. This way you could give players a way easier mean to save Public Corps from Bankruptcy.
The main problem I see with issuing new shares is that when the corp gets the money from the shares it may start paying out excessive cash to share holders before the dangerous phase is really over but if we had both options we would be able to manage long-term (bigger pile of saved cash for bad times) and short-term (issuing new shares when things get dangerous)

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